AMAG profits fall on lower aluminium price

Austrian aluminium supplier AMAG said first-quarter core profit fell 22 percent as the average aluminium price fell 14 percent while the company invested in an expansion programme.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were 24 million euros ($33 million), while EBIT fell 40 percent to 11 million euros, AMAG said on Tuesday.

"In the case that aluminium prices remain depressed, coupled with tight downstream margins, the management board expects the group to post a year-on-year decline in earnings," it said, predicting 2014 EBITDA of 95 to 110 million euros.

AMAG said its expansion project was on schedule and should be largely completed this year, with a new hot rolling mill to start up in the fourth quarter and a rolling slab casthouse scheduled to be completed in the first quarter of 2015.

Shipments rose 10 percent in the first quarter, while revenues were flat at 203 million euros due to lower prices.

AMAG said it used its capacity to the full in the first quarter and a strong order backlog at the end of March signalled full capacity utilisation in all divisions again this quarter. ($1 = 0.7205 Euros)

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